By Marc Guerra, AMA Chief Financial Officer | amacfo@modelaircraft.org
In my last update, I covered the steps for obtaining a nonprofit tax ID number. In this current update, I’ll cover the steps of completing a W-9 request for a tax ID number.
Your club might be asked to provide a W-9 when it opens a bank account or provides any paid services to a local business or other entity. This W-9 form is often a request from a business or other entity and is likely needed for their payee/vendor onboarding records and does not necessitate a 1099 form at the end of the year.
You only need to provide a W-9 form upon request—always obtain this request in writing. Save this request in your annual business record files and note its purpose.
The current IRS W-9 Request for Taxpayer Identification Number and Certification is currently six pages; however, five pages are detailed instructions. The following steps in this guide are under the presumption that your club is operating as a nonprofit, with most revenues derived from memberships. This guide was prepared with the presumption that clubs are operating as a nonprofit. If you are operating in another way, then select the appropriate type in the “classification” Line 3. It is my objective that this guide gets you through the W-9 request easily and quickly.
There are only a few lines that should be answered and completed:
Line 1: The name of your club.
Line 3: Select OTHER, and then write in “nonprofit corporation.”
Line 4: Exempt Payee Code, enter “5” for general exempt payee.
Lines 5 and 6: The official address of the organization.
Part I: Enter your club’s federal employer identification number, not just anyone’s Social Security number.
Part II: Ensure that the chief business officer of your club signs and dates the form.
Keep a copy of this completed W-9 in your club’s annual business records file, along with other business documents, such as expense receipts, invoices, bank statements, deposit records, etc. Also note on your W-9 copy who requested the form and the purpose.
Final Thoughts
Providing a requested W-9 might seem like a daunting task, but by following this guide, the process is navigable. Remember that the process for providing a W-9 is free, and you don’t need the help of any other service or organization in order to successfully provide a completed form. There are many scams and unsecured sites that wish to take advantage of you in order to steal secure information or charge you for their services. You can find the form on the IRS website at www.irs.gov/forms-pubs/about-form-w-9.
In future updates, I’ll cover the general steps for obtaining an IRS nonprofit determination letter and good business record management and retention practices.